Once, when my newborn son was barely back from the hospital, I was holding him in my arms with my wife looking on. I asked him, “Can you say marginal rate of substitution?”
My wife recognized that as a bit of economics jargon and accused me of trying to turn our son into an economist like me.
While it was said as a little joke between the two of us, the longer I teach and write, the more I seriously wish people actually thought in such marginal terms, because many of the times that we confuse ourselves and others are due to our failure to do so. FULL ARTICLE
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Good article! And you applied the MRS to many different situations for good illustration. Thanks!
I am with Michael Clem! This was a very nice essay. Every bit of it is something I already know, but explained in a short, lucid manner that I could never do myself for others. I intend to link this essay at every possible opportunity-whenever I come across arguments that violate it’s precepts, which is pretty much several times a day.
Thank you, Dr. Galles.
Your article is just another lesson of the complications caused by ownership and greed and unwillingness to share freely
Whatever do you mean Greg?
So, Greg, I’m going to assume (with some confidence) that you own or rent (from its owner) a dwelling of some sort. Possibly you regularly SHARE (this word comes from your message) this dwelling with other members of your family – freely (as you say), of course.
Where you live (wherever that is), there are lots of folks who need a place to stay and don’t “have” (I don’t mean to imply ownership, here) one tonight. Have any of those folks sought you out, or you them? For tonight?
How many non-family members, indeed, ARE you sharing (freely) your dwelling with tonight? How long have they been there? And how long do you suppose they’ll stay (which I assume is up to them)?
Looking forward to your answers.
PS Tonight I expect only my wife to share my spacious dwelling with me, and I don’t expect to invite anyone in whom I don’t already know quite well. Of course, my wife IS a co-OWNER of our dwelling . . .
Greg,
I need some new tires for my truck. Could you please e-mail me your credit card number?
I “own” what I use – the rest you are welcome to – I share a rented flat – in $ terms I am worth nothing. If someone knocks on my door and needs to stay a while who am I to refuse. Cr cds are for slave masters and their slaves – live like there is no tomorrow cause one day there will not be one.
Your article is just another lesson of the complications caused by ownership and greed and unwillingness to share freely
Greg, I’m confused. In what way is subjective marginal valuation, that is, the Austrian view of how people evaluate their needs and desires a lesson in greed and stinginess? A market system based on indirect exchange allows us to put monetary prices on those needs and desires, but even without that, people would still need to order those needs and desires and decide what’s most important and least important to them.
I “own” what I use…in $ terms I am worth nothing. If someone knocks on my door and needs to stay a while who am I to refuse. …live like there is no tomorrow cause one day there will not be one.
Are you really knocking living like there’s no tomorrow? Because it sounds like that’s exactly how you’re living–no savings accumulated for the future. Also, since you’re an opponent of greed, why do you maintain so little to share with others? Shouldn’t you want more so that you can share more? Isn’t it stingy of you to deliberately underachieve and minimize your ability to help others? Should we do as you say, not as you do?
Your confusion stems from an inability to see the truth of what is going on before your very eyes. You can do what ever you want – time is of no consequence when you are free. I share what comes my way like these words
Greg sounds like a mystic.
Perhaps even a troll.
Greg,
That is ok, the cash you have on hand will do.
Please remit to Yancey Ward, P.O. Box 368, Ridgefield, CT 06810.
I really appreciate your generous nature. $150 will at least get me started on the front tires.
Thanks.
Now, now, let’s not make fun of the man.
It may well be, that it is one of the few people who are not interested in improving their material well-being (perhaps over a certain treshold). While rare, such people do exist. We may not be able to come to terms with their philosophy, but then again, maybe we don’t need to. The real question is, would he want to force others to “share”? (Whether directly or via state proxy.)
If not, then we can say that the market can have a positive impact even on his life, while the activities of the state are more negative; but in the end, we can agree to disagree, and leave happily, knowing no side of the argument harmed the other.
If the man only wants to enjoy his freedom, I see no problem with that.
It would be wonderful if Greg were not the type who wants you to share your money with the police so they can afford to take it from you. There don’t seem to be many of those around.
I don’t really mind underachievers, Peter, and I even consider myself something of an underachiever. What bothers me are underachievers who smugly think that it’s a morally superior position.
I THINK I know what a troll is (someone who participates in a Web site who is opposed to its ideological bias), but calling Greg names bespeaks argumentive weakness. I consider trolls brave and helpful participants in all discussions of this nature, whatever be their intentions. An analogy might be the effect of a grain of sand lodged in an oyster’s gut (a pearl, one hopes).
And yes, I occasionally act the troll myself, according to the definition above, perhaps on Web sites on which Greg might be more at home.
For my part, I live very much as though there might be a tomorrow because there just might turn out to BE one.
As for owning what I use, I own a 1966 Chevrolet, but I’m not using it at THIS INSTANT (I drove it yesterday, but only for pleasure). So, do I use this thing, or don’t I (I think I will tomorrow)? Should I give it away, or loan it out (free, of course)? What about the 100 shares of Apple Computer I own (and hope to bequeath to my daughter – perhaps for her USE someday)?
I think I should clarify… my point was that Greg did not seem to be putting much effort into his arguments, which is usually a giveaway sign of a troll. If he isn’t one then I apologize.
Gentlemen,
The best things in life are not things.
this is a complicate article about a simple concept ie my kingdom for a horse and variations therof. what once was an abundance is now a rotting economy. economist are to money as politicians are people. both are very special kinds of self serving idiots.
I THINK I know what a troll is (someone who participates in a Web site who is opposed to its ideological bias),
No, that’s not what a troll is; you can be opposed to the ideological bias of a website you participate in without being a troll, and you can be in agreement with it and still be a troll. See http://en.wikipedia.org/wiki/Internet_troll
…my point was that Greg did not seem to be putting much effort into his arguments…
True. Stating a bald assertion tells us what the person thinks, his opinion, but gives us little reason for changing our own minds. That’s not necessarily trollish, we all tend to do it to some extent, but it isn’t good for argument and debate.
Perhaps flame-baiting then?
I am just guessing that I get no money from the unselfish Greg. What a pity!
“I really appreciate your generous nature. $150 will at least get me started on the front tires.”
It’s more than I have right now but if you were hungry or thirsty or had nowhere to stay I would try help you ok my friend.
Not to digress too far into lexicography, it would seem a troll is the Internet instance of a “devil’s advocate.”
Devil’s advocates in some cases want to stimulate real argumentation, and in other cases, I suppose, just want to dissent out of sheer contrariness.
Greg,
Ah, I see. Then you are unwilling to part with your property unless someone with real need appeals to you. That is a bit different from the content of your first comment.
Good – you begin to see. Now look a bit harder
Don’t have to Greg. You are just like a normal human being, and no different from the rest of us.
well then, you are in good company yes
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